Nov 16, 2010

Bumi Minerals IPO set at Rp635

Gold, zinc, and led miner PT Bumi Resources Mineral Tbk (BRMS) has set the final price of intial public offering (IPO) at Rp635 share, the top level of the price range.
Two sources involved at the IPO said Bumi Minerals, non-coal subsidiary of Indonesia's largest thermal coal exporter PT Bumi Resorces Tbk, has reduced the IPO size to 3.3 billion shares of its enlarge capital from the initial size of 4.32 billion shares
"From the IPO target of US$200 million, Bumi Minerals has grabbed US$1 billion demand from investors," the sources told Bisnis today.
Considering the final price, Bumi Minerals enables to snap up Rp2.09 trillion proceed from the IPO.
Vicky Ganda Saputra, Executive Director of Investment Bank at Danatama Makmur is unreachable to comment.
Danatama and Nomura Indonesia has been mandated as lead underwriters the IPO, while Credit Suisse, JP Morgan and Nomura International will act as international selling agents.
Bumi Minerals will use the IPO proceeds to pay all the Calipso’s debt amounting US$150 million stated in the loan agreement with Bright Ventures Pte Ltd.
Callipso Investment Pte Ltd is a subsidiary of Bumi Minerals . The loan is a short-term loan used to finance some of the capital expenditures and working capital of subsidiaries, namely BM, CPM and GM, as well as for working capital of the company.
Besides, the remaining proceeds will be used as part of the additional working capital. The fund generated from the issuance of Series I warrants will be used to finance the exploration activities.